Fuso Pharmaceutical Industries,Ltd. (4538) AI Stock Analysis

• Market Cap: ¥19.04B
• Dividend Yield: 3.78%
• Average Volume (3M): 33.52K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.61
• Revenue Growth: 8.71%
• EPS Growth: -325.91%
• Country: JP
• Employees: 1,370
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 54.14
• Shares Outstanding: 9,451,169
• 10 Day Avg. Volume: 30,690
• 30 Day Avg. Volume: 33,516
• PEG Ratio: 0.07
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.34
• P/FCF Ratio: -3.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,244.00
• Price Target Upside: 4.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ¥2,244.00 ▲(4.96% Upside)

Fuso Pharmaceutical Industries' overall stock score is primarily influenced by its solid revenue growth and stable profitability, despite significant cash flow challenges. The technical analysis suggests neutral to slightly positive momentum, while the valuation reflects earnings difficulties but offers a decent dividend yield. The absence of earnings call and corporate events data limits further insights.

Fuso Pharmaceutical Industries,Ltd. Business Overview & Revenue Model

Company Description

Fuso Pharmaceutical Industries,Ltd. manufactures and sells pharmaceutical products in Japan. The company offers ethical drugs, such as injectables and artificial kidney dialysates; and medical machinery and equipment. It also rents real estate properties. The company was founded in 1937 and is headquartered in Osaka, Japan.

How the Company Makes Money

Fuso Pharmaceutical Industries, Ltd. generates revenue primarily through the sale of its pharmaceutical products, particularly injectables. The company markets its products to hospitals, clinics, and other healthcare facilities, both in Japan and overseas. Revenue streams include direct sales of pharmaceutical products, partnerships, and collaborations with other pharmaceutical companies for distribution and co-development. The company may also earn income from licensing its technologies or products to other firms. Fuso Pharmaceutical Industries' emphasis on research and development helps it to continually innovate and expand its product portfolio, thereby maintaining a strong market presence and driving sales.

Fuso Pharmaceutical Industries,Ltd. Financial Statement Overview

Summary

Fuso Pharmaceutical Industries shows solid revenue growth and stable profitability margins, but faces significant challenges in cash flow management. The balance sheet is robust with manageable debt levels, yet negative cash flow metrics highlight the need for strategic improvements in cash generation and capital expenditure efficiency.

Income Statement

Fuso Pharmaceutical Industries has shown consistent revenue growth, with a 9.31% increase from 2024 to 2025. The gross profit margin for 2025 stands at 27.3%, indicating efficient cost management. The net profit margin improved to 4.59%, reflecting enhanced profitability. However, the EBIT and EBITDA margins, while improved, are moderate at 6.82% and 10.39% respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet is stable with a debt-to-equity ratio of 0.54, reflecting prudent leverage levels. The return on equity is 7.11%, showing satisfactory returns on shareholders' investments. Equity ratio is healthy at 49.48%, indicating a strong equity base relative to total assets. However, the slight increase in total debt warrants attention for future leverage control.

Cash Flow

The cash flow statement shows challenges, with a negative free cash flow of -5.43 billion yen in 2025, marking a significant decline. The operating cash flow to net income ratio is negative, highlighting cash generation issues. The free cash flow to net income ratio is also negative, underscoring the need for improved cash management practices.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.50B	60.56B	55.41B	51.02B	49.63B	49.25B
Gross Profit	4.08B	16.53B	13.52B	13.74B	13.40B	14.11B
EBITDA	1.36B	6.29B	4.20B	4.63B	4.47B	4.79B
Net Income	462.00M	2.78B	1.38B	1.60B	1.48B	1.61B
Balance Sheet
Total Assets	86.99B	79.05B	75.80B	72.47B	69.33B	69.88B
Cash, Cash Equivalents and Short-Term Investments	3.16B	6.26B	5.12B	8.01B	7.35B	7.07B
Total Debt	28.23B	21.29B	12.72B	12.63B	12.09B	13.20B
Total Liabilities	53.81B	39.94B	39.14B	36.82B	34.80B	36.19B
Stockholders Equity	33.18B	39.11B	36.66B	35.65B	34.53B	33.68B
Cash Flow
Free Cash Flow	0.00	-5.43B	-2.96B	1.28B	2.01B	2.02B
Operating Cash Flow	0.00	-3.31B	627.00M	2.85B	3.50B	3.23B
Investing Cash Flow	0.00	-3.17B	-3.54B	-1.37B	-1.55B	-978.00M
Financing Cash Flow	0.00	7.62B	14.00M	-813.00M	-1.67B	-2.45B

Fuso Pharmaceutical Industries,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2138.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4538, the sentiment is Positive. The current price of 2138 is above the 20-day moving average (MA) of 2136.84, below the 50-day MA of 2148.85, and below the 200-day MA of 2239.52, indicating a neutral trend. The MACD of 5.68 indicates Negative momentum. The RSI at 59.33 is Neutral, neither overbought nor oversold. The STOCH value of 76.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4538.

Fuso Pharmaceutical Industries,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4524	78 Outperform	¥8.92B	19.23	―	2.52%	-0.09%	-29.95%
4539	70 Outperform	¥5.78B	14.63	―	3.10%	5.18%	―
4577	63 Neutral	¥35.93B	19.04	―	4.41%	7.56%	-48.91%
4538	60 Neutral	¥19.04B	6.46	―	3.78%	8.71%	-325.91%
4512	52 Neutral	¥10.07B	159.96	―	1.03%	4.00%	-933.04%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Fuso Pharmaceutical Industries,Ltd. Corporate Events

Fuso Pharmaceutical Reports Q1 2025 Financial Results with Increased Sales but Declining Profits

Fuso Pharmaceutical Industries, Ltd. reported its non-consolidated financial results for the three months ended June 30, 2025, showing a 6% increase in net sales compared to the previous year. However, the company experienced a significant decline in operating profit, ordinary profit, and net profit by 48.1%, 28.8%, and 26.9% respectively, indicating challenges in maintaining profitability despite increased sales.

Fuso Pharmaceutical Unveils FUSO VISION 2030 Next Stage Plan

Fuso Pharmaceutical Industries, Ltd. has announced its medium-term management plan, FUSO VISION 2030 Next Stage, aimed at addressing industry challenges and ensuring sustainable growth. The plan includes significant investments in production facilities, research and development, and digital transformation to enhance corporate value and meet unmet medical needs. The company aims to achieve sales of over 70 billion yen and an ROE of over 8.0% by 2030, despite expected profit declines until 2028 due to initial investments.

Fuso Pharmaceutical Reports Mixed Financial Results for Q2 2025

Fuso Pharmaceutical Industries reported its non-consolidated financial results for the three months ended June 30, 2025, showing a 6% increase in net sales compared to the previous year. However, the company experienced a significant decline in operating and ordinary profits, with decreases of 48.1% and 28.8% respectively, indicating potential challenges in maintaining profitability. The financial forecast for the fiscal year ending March 31, 2026, suggests modest growth in net sales but continued pressure on profits, impacting stakeholders’ expectations.

Fuso Pharmaceutical Announces Executive Officer Changes

Fuso Pharmaceutical Industries, Ltd. announced changes in its executive officer positions, effective September 1, 2025, following a Board of Directors meeting. These personnel changes involve reassignments within the company’s production division, impacting the management of its Ibaraki and Okayama factories, which may influence operational efficiencies and strategic positioning in the industry.

Fuso Pharmaceutical Announces Executive Personnel Changes

Fuso Pharmaceutical Industries, Ltd. announced personnel changes in its executive officer team following a Board of Directors meeting on June 25, 2025. The changes include the appointment of new executive officers and the reappointment of six current members, indicating a strategic move to strengthen its leadership structure.